Tag: Motley Fool

Key points

• ASX 200 iron ore majors struggled through 2021
• This expert believes the slump means they are now trading for bargain prices
• Additionally, with China expected to grow in 2022, they might be set to take off

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There’s been a lot going on with S&P/ASX 200 Index (ASX: XJO) iron ore giants in 2022. Notably, BHP Group Ltd (ASX: BHP) has unified with its London listing to become the biggest company on the ASX.

But with the 3 majors – BHP, Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG) – having ended 2021 in the red, they might not seem like the best investment in 2021.

However, Randal Jenneke, head of Australian equities at T. Rowe Price, disagrees. He believes 2022 will be China’s year and the iron ore majors will be taken along for the ride.

Let’s take a closer look at what the expert is predicting will be in store for ASX 200 iron ore giants this year.

Are iron ore giants 2022 in the ‘buy’ zone?

The 3 major iron ore stocks of the ASX 200 ended last year in the red. The Fortescue Metals share price led the fall, tumbling 18%.

Meanwhile, those of BHP and Rio Tinto slid 2% and 12% respectively.

However, Jenneke is predicting blue (green?) skies for the companies in 2022, driven by growth in China.

He said the Chinese market was one of the only global markets to fall in 2021 – slipping 21%. That leaves the nation pushing for more growth while much of the world attempts to slow down inflation.

“If you think about the story for China for 2021, it was a story about deceleration of growth, dealing with the property market issues, and high levels of leverage,” said Jenneke.

“But China slowed too much. China finished 2021 with about 4% GDP growth. Their target for 2022 is 5.5% to 6%.

“So, that’s really interesting because what that means is, we think the demand environment is going to improve for commodities … therefore, the big miners should be positioned to do much better.”

He said the recent poor performance may have put ASX 200 iron ore stocks back into the buy zone.  

“When you come back to the valuations of some of the big miners like BHP and Rio, they’re quite cheap versus their history and on most valuation metrics they screen attractive,” said Jenneke.

How have ASX 200 iron ore shares performed in 2022 so far?

This year has been a good one so far for ASX 200 iron ore giants.

The Fortescue Metals share price – last year’s worst performer – has gained 7% year to date.

Meanwhile, the BHP share price is also in the green, perhaps unsurprisingly given its unification. It has surged 10%.

Finally, the Rio Tinto share price is leading the pack with a gain of 14%.

The post Is now the time to buy shares of ASX 200 iron ore giants? Expert weighs in appeared first on The Motley Fool Australia.

More reading

• Do any ASX lithium shares pay dividends?
• Why this broker thinks the Fortescue (ASX:FMG) dividend will come under significant pressure
• Top brokers name 3 ASX shares to sell today
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Morgans names the best ASX resources shares to buy in February

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• ASX 200 energy shares have been boosted by rising oil prices
• OPEC may not be able to increase supplies enough to meet demand
• US shale oil producers are planning huge production increases

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S&P/ASX 200 Index (ASX: XJO) energy shares like Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL) and Beach Energy Ltd (ASX: BPT) have been enjoying some welcome tailwinds from rocketing oil prices.

The index itself is up 0.25% in afternoon trading.

But buoyed by rocketing oil prices, the Santos share price is up 0.68%, the Woodside share price is up 0.65% and Beach Energy shares are up 1.70%.

With Brent crude oil soaring from US$77.80 at the start of 2022 to US$91.60 today, an almost 18% increase, these ASX 200 energy shares have also smashed the benchmark’s year-to-date returns.

What’s driving surging crude prices?

After falling off a cliff in the early months of the global pandemic, the oil price has been marching higher.

That’s partly been due to a dearth of new investment in exploration and capacity expansion. Now, as the world reopens, energy demand is outpacing supply.

Then there’s the Organization of Petroleum Exporting Countries and its partners (OPEC+). The cartel managed to drastically cut its combined oil output after the 2020 price crash. And it’s only gradually lifting its production quota.

Yet even with the modest lifts in permitted capacity (see here for more), many of the member states aren’t able to pump up to their quota levels.

Commenting on that situation, John Driscoll, director of JTD Energy Services said (quoted by Bloomberg), “Oil prices remain constructive on solid fundamentals. OPEC continues to fall short of its target, although it is promising to do better.”

Throw in various geopolitical tensions in oil rich areas – from Russia and Ukraine to Libya and the United Arab Emirates – and you’ve got the perfect recipe for rising energy prices. And soaring ASX 200 energy shares.

And crude prices could head significantly higher yet. Goldman Sachs is forecasting US$100 per barrel.

But wait. Haven’t we been here before?

How US producers could spoil the party for ASX 200 energy shares

If you have a look at the crude oil price charts in 2018, you’ll see that Brent was steadily gaining and notched just over US$84 per barrel on 5 October. Then it cratered.

By 28 December 2018, that same barrel was trading for US$52. A loss of 38% in less than 3 months.

That drop wasn’t due to a pandemic or any other major events impacting energy demand.

Rather it came as US shale producers, spurred by the high market prices, pumped record amounts of oil. At times this saw the US top Saudi Arabia as the world’s number 1 oil producer. And for the first time in many decades, the world witnessed the US export its first oil shipments.

Now 2022 and 2023 could be shaping up in a similar way.

According to US oil giant ConocoPhillips, output from the oil rich Permian Basin is set to grow by a phenomenal 900,000 barrels per day (bpd) in 2022, far above the latest estimates from the Energy Information Administration.

As Bloomberg reports, ConocoPhillips CEO, Ryan Lance’s forecast of a 900,000 bpd output lift points to “surprise announcements in recent days by Exxon Mobil Corp. and Chevron Corp. to aggressively ramp up Permian Basin production“.

With West Texas Intermediate (WTI) crude also topping US$90 per barrel, the US shale industry is tipped to generate record cash flows in 2022.

Lance said he was caught off guard by Exxon’s announcement this week that it intends to ramp up its Permian Basin output by 25%. Chevron is also opening the spigots wider, with a 10% increase on the cards.

That much new supply could certainly bring down the crude price and throw up some headwinds of ASX 200 energy shares.

“We were a bit surprised at the strength of some of the numbers that we were hearing,” Lance said.

From an oil trader’s perspective he added, “I’m absolutely concerned about. If you’re not worried about it, you should be.”

How these ASX 200 energy shares have been performing

With oil prices running hot so far in 2022, the Santos share price has gained 18%, the Beach Energy share price is up 19%, and Woodside shares have gained 19%.

This over a period that’s seen the ASX 200 fall 5%. 

The post Could US producers spoil the party for ASX 200 energy shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Morgans names the best ASX resources shares to buy in February
• The 2022 outlook for Beach Energy (ASX:BPT) shares is sunny: expert
• Own ASX 200 energy shares? Here’s what OPEC’s been up to
• 5 things to watch on the ASX 200 on Thursday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Appen Ltd (ASX: APX)

According to a note out of Citi, its analysts have retained their buy rating and $14.80 price target on this artificial intelligence data services company’s shares. The broker has been looking into recent industry developments and doesn’t believe the Meta (Facebook) high-performance self-supervised algorithm, data2vec, is an imminent threat to Appen’s business. Particularly not for its Relevance business. In addition, it sees opportunities for Appen to shift to more complex work that would be out of reach for this algorithm. The Appen share price is trading at $9.40 today.

Aristocrat Leisure Limited (ASX: ALL)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $46.00 price target on this gaming technology company’s shares. While the broker acknowledges that Aristocrat’s failure to close the acquisition of Playtech is disappointing, it remains positive on the future. This is due to its strong performance and outlook of the core business and its mountain of cash following its capital raising. The Aristocrat share price is fetching $41.04 on Friday.

Westpac Banking Corp (ASX: WBC)

Analysts at Morgans have retained their add rating and $29.50 price target on this banking giant’s shares following its first quarter update. According to the note, Morgans believes that Westpac’s update supports its view that the challenges the bank is facing are not unsurmountable and that its shares should not be priced like a value trap. The Westpac share price is trading at $21.45 on Friday afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why is Meta’s earnings miss bad news for the Appen (ASX:APX) share price?
• Hunting for ASX shares? Experts say to avoid this sector in 2022
• Is the Westpac (ASX:WBC) share price good value after its first quarter update?
• 5 things to watch on the ASX 200 on Friday
• What can the Westpac results tell us about the outlook for ASX 200 bank shares?

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) just can’t seem to figure out what it wants with this Friday’s trading session. At the time of writing, the ASX 200 has gained 0.09% and is sitting at 7,084 points after seesawing between positive and negative territory all day thus far.

But rather than trying to figure all of that out, let’s instead take a look at the ASX 200 shares that are topping the market’s trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Scentre Group (ASX: SCG)

ASX 200 real estate investment trust (REIT) Scentre Group is our first cab off the rank today. The Westfield owner has seen a hefty 13.1 million of its units trade on the ASX thus far. There hasn’t been too much in the way of news or announcements out of Scentre so far today.

However, we have seen significant volatility in the Scentre unit price. The company is presently down 0.17% at $2.94 a unit, but has been as high as $2.99 and as low as $2.93 over the trading day. It’s probably this bouncing around that is responsible for so many shares trading on the markets.

Paladin Energy Ltd (ASX: PDN)

Next up, we have ASX 200 uranium miner Paladin Energy. Paladin has had a substantial 26.3 million shares swap owners as it currently stands. Again, we have no major developments out of Paladin so far today, although the company did release an investor presentation yesterday morning.

However, the Paladin share price has also been showing some volatility this Friday. The company is currently enduring a 0.42% loss at 69 cents per share. But this company has been both down 1% and up more than 3% in the span of today’s session. Once more, it’s this whipsawing that is likely to be the smoking gun behind this elevated trading volume.

Sydney Airport (ASX: SYD)

Last, but certainly not least, in terms of trading volumes we have Sydney Airport. This ASX 200 infrastructure stalwart has had a whopping 30.35 million shares bought and sold on the markets today. The Sydney Airport share price hasn’t done too much this Friday. It’s currently cruising at a flat $8.72.

However, we got the news yesterday that shareholders have voted overwhelmingly in favour of Sydney Airport’s buyout by the Sydney Aviation Alliance. It’s now very likely that the company will be delisted from the ASX next week. So this volume could be the result of investors looking to cash out ahead of time.

The post These 3 ASX 200 shares are topping the volume charts on Friday appeared first on The Motley Fool Australia.

More reading

• Tech stocks crash, while Nufarm soars. Scott Phillips on Nine’s Late News
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Should you buy ASX shares now or wait just a little bit?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Crypto startups racked up a total of US$25 billion in funding last year
• January saw a continuation in access to capital for crypto companies with FTX and Fireblocks gaining US$1.35 billion
• One insider expects more to come as the industry matures

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Even as cryptocurrency prices take a nosedive, cryptocurrency startups are raking in cash.

In fact, they raised a record $25 billion in 2021. This is an eightfold increase from the previous year.

While some investors may be growing wary of the collapse in cryptocurrency valuations, it doesn’t seem to be putting a damper on investment in crypto and blockchain startups.

Taking the picks and shovels approach to cryptocurrency

January was another unkind month for crypto investors, following a trend that began in November last year. During the month, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) tumbled a further 17% and 29% respectively.

Yet, some private companies operating in the crypto-sphere have been going from strength to strength. In doing so, raising mindboggling amounts of money to fuel more growth.

Crypto derivatives exchange provider, FTX closed another round of funding in January amounting to US$800 million, ballooning its valuation to US$40 billion. The additional injection of funds was backed by Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA.

In another example of crypto companies raising funds despite the weakness in cryptocurrency prices, digital asset custody start-up Fireblocks scored $550 million in funding. The series E funding pushed the company to a sizeable US$8 billion valuation.

The institutional interest in these types of private companies in the crypto space exhibits a more ‘picks and shovels’ approach to the volatile industry. To a degree, these companies offer a ‘safer’ entrance into the growing cryptocurrency market.

US-based crypto exchange, Coinbase Global Inc (NASDAQ: COIN) is an example of this more traditional play. Irrespective of digital asset prices, the company continues to pull in revenue from people using its exchange.

In addition, Coinbase earns a small fee on crypto-assets in its custody. This was last reported to be more than 50% of the US$90 billion on its books.

What is driving this trend?

One would suspect that crypto companies would come under pressure as cryptocurrencies begin to falter. Especially when some spectators are anticipating the dawn of a ‘crypto winter‘.

So, what could be enticing sophisticated investors and institutions to keep pouring capital into these companies? Well, according to Fireblocks co-founder and CEO Michael Shaulov, part of the reason is maturing of the space.

Shaulov said:

What is very clear to us is that the investment in the infrastructure is not going to stop.

Further to this, the fast-growing crypto company co-founder highlighted more sophisticated uses of cryptocurrency. The potential posed by stablecoins and blockchain-based securities is attracting attention beyond speculation.

The post Cryptocurrency crash fails to put a dampener on cash-raising fiesta appeared first on The Motley Fool Australia.

More reading

• Is Bitcoin using lots of energy actually a good thing?
• Bitcoin price slides again. Here’s what crypto investors are watching
• Why these five cryptos could leave Bitcoin in the dust in 2022
• What are Stablecoins and how do they differ from other cryptocurrencies?
• Here’s why the leading cryptocurrencies are ticking higher

Motley Fool contributor Mitchell Lawler owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns Bitcoin and Ethereum. The Motley Fool Australia owns Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The Liontown share price is up 5% today
• The company has raised $12.9 million from its share purchase plan
• This comes after it recently completed a $450 million institutional placement.

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The Liontown Resources Limited (ASX: LTR) share price is leaping today.

This comes after the battery metals explorer revealed after the market closed yesterday that it had completed its share purchase plan (SPP). The SSP was first announced at the start of December.

Currently, the Liontown share price is up 5.45 % at $1.45.

Let’s take a look at the news out of Liontown.

What’s pushing up the Liontown share price?

Liontown’s SPP has closed with subscriptions from eligible shareholders totalling $12.9 million. The explorer initially aimed to raise up to $40 million (before costs).

In the placement, shareholders were given the opportunity to apply for up to $30,000 worth of Liontown ordinary shares. This was under the same price and conditions as the explorer’s recently completed placement of $450 million at $1.65 a share, without paying any brokerage costs, commission, or other transaction costs.

Some 7,819,543 new shares were issued today and are expected to be quoted on Monday. However, shareholders were encouraged to confirm actual holdings prior to engaging in the new shares.

In its recent quarterly activities report, the company advised the $450 million placement had received “strong demand” from “high-quality domestic and offshore institutions”. These funds have allowed the explorer to de-risk and further develop its Kathleen Valley site in Western Australia.

Comment from management

Speaking on the announcement likely pushing up the Liontown share price today, managing director and CEO Tony Ottaviano said:

On behalf of the Board, I would like to thank shareholders for the strong support they have shown through the SPP during what has been a very volatile period in global markets since the start of the year.

The funds raised under the SPP together with the proceeds of the A$450 million institutional placement completed in December have significantly de-risked our development pathway and put Liontown firmly on track to achieve its objective of becoming a world-class battery materials company.

Liontown share price snapshot

Over the last 12 months, the Liontown share price has increased by around 253%. It has also seen a 51% increase in the last six 6 months.

During the past year, it reached its highest price of $1.94 in November and its lowest of 40 cents almost a year ago.

The explorer has a market capitalisation of $3 billion and 2.18 billion shares issued.

The post ‘Strong support’: Here’s why the Liontown (ASX:LTR) share price is pouncing higher today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
• 2 ASX lithium shares analysts rate as buys
• Why Liontown (ASX:LTR) could be a lithium share to buy in 2022
• Liontown (ASX:LTR) share price leaps again as boss dismisses lithium supply glut concerns
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key Points

• Webjet shares 10% higher over the past week due to falling COVID-19 numbers and potential re-opening of Australia
• Webjet taking advantage of its opportunities and gearing up for the resumption of travel
• FY22 results expected to be released in late May 2022

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The Webjet Limited (ASX: WEB) share price has rebounded strongly since last Friday to post a gain of 11.06%.

This follows the S&P/ASX 200 Index (ASX: XJO) which rallied 3.38% after investors shrugged off concern about interest rate rises.

At the time of writing, the online travel agent’s shares are flat at $5.12 apiece.

What’s driving Webjet shares higher?

As COVID-19 continues to decline across the country, Webjet is gearing up for the potential international re-opening in April.

Although Western Australia’s borders are indefinitely shut for now, it appears investors are looking at the bigger picture.

Last week, Australian prime minister Scott Morrison indicated that international tourists should be able to visit by Easter.

With the world moving on and beginning to accept living with the virus, normality may not be far away for Australians.

This will be particularly pleasing for Webjet as it has been taking advantage of its opportunities.

In its FY22 first-half results, the company noted that competition has decreased due to financial pressures impacting the travel industry.

As such, management highlighted that the WebBeds business is poised to deliver significant revenue growth.

In particular, Webjet has focused on expanding its domestic offering, with increased penetration into the North American B2B market. This segment is the company’s second biggest market, behind the Asia Pacific region in terms of booking numbers.

Even with Western Australia closed for now, Webjet will be churning profit due to its geographical spread. The state does play an important role but is not vital in terms of the company’s operations.

Webjet also boosted and optimised its API (application programming interface) connections for key business to consumer (B2C) clients. It stated that the financial strength of the company makes it a trusted partner for hotel suppliers.

Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.

Webjet share price summary

It’s been a rollercoaster of 12 months for Webjet investors, with its shares up 2% over the period. Year to date, Webjet shares are down almost 1%.

Based on valuation grounds, Webjet has a market capitalisation of around $1.95 billion, with approximately 380.51 million shares on issue.

The post Here’s why the Webjet (ASX:WEB) share price is up 10% in a week appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• Could the Webjet (ASX:WEB) share price be about to get a boost?
• These are the 10 most shorted ASX shares
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• Are Virgin Australia shares set to rejoin the ASX soon?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,074.5 points.

Four ASX shares that are falling more than most are listed below. Here’s why they are dropping:

Boral Limited (ASX: BLD)

The Boral share price is down 42% to $3.78. The good news is that nothing bad has happened and this decline relates to Boral returning a total of $3 billion to shareholders following a series of asset sales. Today the building materials company’s shares are trading ex-capital return. Eligible shareholders can now look forward to receiving a total cash distribution of $2.72 per share. This comprises a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down over 1% to $18.25. This may relate to a broker note out of UBS this morning. According to the note, the broker has retained its sell rating and $17.00 price target on the fund manager’s shares. It isn’t feeling confident about Magellan’s fees and flows outlook.

REA Group Limited (ASX: REA)

The REA share price is down 2% to $141.36. This is despite the release of first half results that came in ahead of the market’s expectations. The property listings company delivered revenue growth of 37% to $590 million and EBITDA growth of 27% to $368 million. The latter was ahead of the market consensus estimate of ~$350 million. REA also revealed that January had started strongly.

SEEK Limited (ASX: SEK)

The SEEK share price is down 4.5% to $28.14. This may have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its sell rating and cut its price target on the job listings company’s shares by 15% to $27.30. This follows a review of its valuation of the Seek Growth Fund business following industry feedback which suggests valuation pressure on venture capital assets.

The post Why Boral, Magellan, REA, and SEEK shares are falling today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Did the Boral (ASX:BLD) share price really just collapse 40%?
• REA (ASX:REA) share price higher after smashing first half expectations
• 5 things to watch on the ASX 200 on Friday
• Why Amcor, Boral, Nufarm, and Westpac shares are rising today

Motley Fool contributor James Mickleboro owns SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in language technology data and services provider Appen Ltd (ASX: APX) are finding range today and are currently trading less than 1% higher at $9.48 apiece.

The Appen share price started the day well after spiking hard immediately from the open, and has since traded in an intraday range of $9.35–$9.68.

However, zooming out, shares are down 15% since January 1 and have faltered almost 58% in the last 12 months of trading, especially as ASX tech shares have taken a beating in 2022.

RBC Capital Markets is cautious on Appen

Following the earnings release of global tech juggernaut Meta Platforms Inc (NASDAQ: FB) – formerly Facebook – on Wednesday, global tech indices are now showing more signs of jitteriness.

The S&P/ASX All Technology Index (XTX) fell 112 points the day after Meta’s earnings release for instance, with many ASX tech names involved with the tech giant hit hard across the board.

Not to mention that ASX tech names have already taken a beating in 2022 as some experts predict the speculative tech bubble may finally be popping.

The outcome from Meta’s earnings results could be an ongoing problem for the Appen share price, according to the team at RBC Capital Markets.

Analysts at the firm dug into Meta’s weaker than expected financials after it reported earnings, and Meta’s weak earnings could spell trouble for Appen going forwards.

The broker notes that Meta is finding that navigating its ad-targeting landscape is far more difficult, now that devices have enabled a feature to turn off data tracking – a key issue for Appen, which specialises in data annotation.

What’s more, is that Appen’s sales revenue is heavily exposed to advertisers such as Meta. RBC alludes to this in its note, correctly stating that Appen’s “AI-powered search relevance” – that sources and prepares data for tech and advertising companies like Meta – accounts for over 80% of domestic revenue.

Given the threat to Meta’s advertising business now that device users have optionality on who tracks their data, this could bode in poorly for Appen’s earnings, and consequently its share price, RBC says.

Even though the stock is trading around its single-year lows, the broker hadn’t much to say about its growth prospects and retained its neutral rating with an $11 price target.

According to a list of analysts provided by Bloomberg Intelligence, the consensus price target on Appen’s share price is $12.97. Although, it is yet to be seen what other brokers will have to say regarding Meta’s earnings result and Appen’s outlook.

Appen shares have tanked 15% in the last month after a fairly horrendous start to the year. Still, even amidst the weakness, shares have regained support this week and are up 8% in that time.

The post Why is Meta’s earnings miss bad news for the Appen (ASX:APX) share price? appeared first on The Motley Fool Australia.

More reading

• Why did ASX 200 tech shares get annihilated today?
• With Afterpay shares no longer listed, is WAAAX officially dead?
• ASX 200 (ASX:XJO) midday update: Westpac higher on Q1 update, tech shares sink
• Why is the Appen (ASX:APX) share price down 7% today?
• Why did these tech shares lead the ASX 200 today?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Finding ASX shares that can offer both share price and dividend growth over a long period of time could be called the ‘Holy Grail’ of investing. Some investors invest purely for capital growth. Others are only in it for dividend income. But having both can be described as having your cake and eating it too. What more could one want?

But, unfortunately, these things are only obvious with the benefit of hindsight. But that’s not the end of the world. As we sometimes say here at the Fool, winners can keep on winning.

So here are 3 ASX shares that have given investors a healthy mixture of both over the past few years.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi has been one of the best ASX retail shares to have owned over the past 5 years. For one, the share price of this electronics and entertainment retailer has risen from under $22 back in July of 2017 to the $47.67 we see so far today. That’s more than a doubling. But what’s more is that JB Hi-Fi has also managed to jack up its dividends very quickly as well. This company paid out $1 in dividends per share in 2016. But 2021 saw the company dole out a total of $2.87 in fully franked dividends per share. On today’s pricing, that gives JB Hi-Fi a trailing yield of just over 6%.

Super Retail Group Ltd (ASX: SUL)

Another all-rounder, next up is Super Retail Group. This company is the name behind popular retail chains like Rebel Sport, Super Cheap Auto and BCF. Super Retail Group shares have been a decent performer over the past few years. They are now up more than 80% since the start of 2019. But this company has also delivered very healthy dividends to its investors. 2019 saw it pay out 50 cents per share in fully franked dividends. But last year saw investors receive 88 cents per share in dividends. That’s a long way from 2019’s levels, and even further from the 41.5 cents per share it doled out in 2016. On current pricing, Super Retail Group’s 2021 dividends give its shares a trailing yield of 7.3%

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts, as this company is more easily known as, is our final share to check out today. For starters, this company has the best dividend record on the ASX. Soul Patts has given its investors an annual dividend increase every single year since 2000. That 21-year streak and counting is unmatched by any other ASX share. Soul Patts is an investing conglomerate of sorts. It owns large chunks of other ASX companies, the most prominent of which include Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC).

But this company has been on a very pleasing share price run too. Even after falling more than 30% from its most recent all-time high of $40.80 over the past 5 or so months, Soul Patts remains up a healthy 71.5% over the past 5 years. On current pricing, it offers a fully franked dividend yield of 2.27%. 

The post Have your cake and eat it: These ASX shares have been paying regular dividends whilst growing their share prices appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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